Most adults still read newspapers

A new Scarborough Research study has found that 74% of adults (about 171 million) in the U.S. read a newspaper in print or online during the past week. The percentage is even higher among affluent folks. Yet, newspaper companies continue to struggle to find new revenue streams and are still shedding jobs.

The newspaper business seems to be one of the few industries that produces a product (credible information) that people want and routinely use, yet it still can't seem to financially right itself enough to satisfy boards of directors and nervous investors. Despite massive layoffs and other cost-cutting measures that have watered down content, profits remain flat because of the lack of advertising due to the recession. Circulation is down because of free news offered online, but circulation is not the main source of revenue for most papers.

However, one must keep in mind that newspapers historically have outperformed many other businesses in terms of profit margins. Journalists are generally paid a lot less than comparably educated folks. Most newspaper buildings are modest to say the least. Amenities and perks are few except at the largest media companies.

People go into journalism for various reasons, but money is generally not high up on the list. When a journalist loses his or her job, it's extra painful because it's unlikely that they have accumulated enough savings to ride out an extended storm. And we are in the mother of all storms right now.

What some papers are experiencing in this recession are margins more in line with other industries. The panic, which has included thousands of layoffs, does not seem to be as warranted as some might think.The companies carrying the most debt are the ones in the most trouble. Laid-off workers are paying the price for the mistakes made by people at higher pay grades. But some of the smaller chains are getting by because they did not overspend during the good times. Many newspapers, big and small, are still profitable. If you didn't follow the business closely, you might think newspapers were like certain automakers, losing millions every week. That simply is not the norm for most publishers. Some newspapers that were hurting the most have closed their doors. But most live on.

There is a necessary transition more than an extinction going on in newsrooms, but tell that to people, like myself, who lost their jobs after 20 or 30 years and are struggling to find new ones. I support that transition to digital-news gathering and high-tech delivery systems, but loathe the way some companies are going about it.

After the loss of so much institutional knowledge via layoffs, one has to wonder what condition the business will be in when the smoke clears. Will readers still be there if content becomes less credible? Will investigative reporting be deemed as too costly? Will journalism schools bother teaching the basic principals of fair reporting and artful photo editing, or will they just offer courses in how to design web sites and sell pop-up ads? Will journalists have some life experience and perspectives that enrich their stories, or will everyone over 50 be forced out of newsrooms? Will front pages become massive advertisements? As a side note, I always found it admirable that Google refuses to put a single ad on its home page. They see creative and marketing value in keeping the page pristine.

I am convinced that for news products to remain viable, the basics need to be taught in universities and on the job by seasoned journalists. Just as an astronomer needs to understand math, a web designer better receive some instruction on libel, story editing, headline writing and freedom of information laws. Those building blocks help form strong news products that distinguish themselves from supermarket tabloids and off-the-wall blogs. I fear some decision-makers are losing sight of that and are therefore their own worse enemies in terms of ruining newspapers.

Whether the news is in print or online, content is a valued product that takes a diversity of talented people to produce, design and sell. When I see organizations like The Associated Press laying off a 70-year-old photographer, as it recently did, I fear something other than a paycheck is being lost. Many newspapers try hard to acquire ethnic and racial diversity in their workforce, but seemingly do little protect older workers anymore. It wasn't always that way.

The Scarborough study proves there is still an appetite for news. Walk into almost any coffee shop or onto any commuter train and you will see people reading the paper. It's up to industry leaders not to wreck the business while trying to survive the recession. If traditional companies continue on the path of torching everything in sight in order to improve bottom lines, I believe media startups will spring up to satisfy the public's need for news -- online, on Kindles and iPhones, and yes, even in print to some degree.